Leadership changes at Quoc Cuong Gia Lai JSC

On the morning of July 30, Nguyen Quoc Cuong chaired the second annual general meeting of shareholders for 2024 after taking over as CEO of Quoc Cuong Gia Lai JSC (QCG) from his mother, who was arrested on July 19 related to a project transfer in Ho Chi Minh City.

Returning to the leadership after a six-year hiatus, Cuong is expected to address issues with the Phuoc Kien project and other real estate challenges. QCG needs to repay VND 2,880 billion to Van Thinh Phat, the amount pre-paid for the Phuoc Kien project, to regain control of the project.

However, with a meager cash reserve of less than VND 30 billion and substantial inventory tied up in stalled projects, QCG faces significant financial strain. The company’s total debt exceeds VND 5,000 billion, with financial leases and loans making up a significant portion.

The future of QCG’s projects remains uncertain following the arrest of Nguyen Thi Nhu Loan and Cuong's takeover. Despite this, QCG's stock has seen a resurgence after an initial decline.

bau Duc Cuong dola 5.jpg
Doan Nguyen Duc - Chairman of Hoang Anh Gia Lai. Photo: KTDT

Hoang Anh Gia Lai's financial maneuvering

Hoang Anh Gia Lai Group (HAGL), under Chairman Doan Nguyen Duc, has recently alleviated some financial burdens by selling its agricultural segment to Thaco, led by billionaire Tran Ba Duong. This deal provided significant funds for debt repayment and attracted new investments from LPBank and Thaiholdings.

Despite these measures, HAGL’s debt remains substantial. As of June 30, HAGL had delayed payments totaling over VND 4,364 billion due to pending payments from Thaco related to the sale of HAGL Agrico. The company's agricultural subsidiary, HAGL Agrico, was recently delisted after three consecutive years of losses.

Investors are hopeful that the involvement of new shareholders will lead to a resurgence for HAGL. The company's stock had doubled in value at one point but has recently faced selling pressure, bringing the price down to VND 12,300 per share.

Decline of Duc Long Gia Lai

Duc Long Gia Lai (DLG), once a major player in the highlands with roots in wood processing, has seen better days. The company expanded into various sectors and made headlines with its acquisition of American electronics component company Mass Noble in 2015.

Now, DLG is grappling with significant losses and is contemplating selling its factory in China. The company’s stock has plummeted, reflecting its financial woes. As of March 31, 2024, DLG had accumulated losses of VND 2,637 billion, with a market capitalization of just over VND 595 billion. The company's debts are extensive, totaling over VND 2,722 billion, including substantial short-term financial obligations.

DLG’s struggles are compounded by creditors like Lilama 45.3, which have filed for bankruptcy proceedings over relatively minor debts. The company has been making payments but remains under significant financial stress.

Recently, DLG’s board resolved to sell its entire stake in Mass Noble Investments Limited, a key revenue contributor since 2016, to manage its financial difficulties.

US$1 = VND25,200

Manh Ha